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XBOX Moves Rare Under Activision & Obsidian Entertainment to Bethesda
Insider Gaming • • technology
Key Points:
- Xbox has restructured its studios, moving Rare under Activision and Obsidian Entertainment under Bethesda as part of a corporate consolidation effort to streamline operations and strengthen franchises.
- Obsidian will continue working on current projects like Grounded and a new Fallout game in collaboration with Bethesda Game Studios, while Activision will oversee Rare and develop the next Halo title with a dedicated new team.
- The restructuring follows the July 2026 Xbox layoffs, which recently expanded to include an additional 268 employees, reflecting broader organizational changes within Xbox.
- Despite the changes, active development on existing and upcoming games is expected to continue without disruption, potentially benefiting from increased resources under the new management structure.
- Xbox also recently pursued a deal with Ninja Theory that ultimately did not materialize, indicating ongoing strategic shifts in the company's studio partnerships.
